“The investment proceeds will be used for a one-time settlement with existing lenders, general working capital and growth requirements of the company,” India RF and Panacea Biotec said in a joint statement.
This investment is structured by way of non-convertible debentures (NCDs) of up to Rs 864 crore and subscription amount of Rs 32 crore towards share warrants to be allotted on a preferential basis, it added.
The subscription amount represents 25 per cent of total amount of Rs 128 crore proposed to be raised upon issuance of equity shares against warrants as per SEBI regulations, 2018, the statement said.
Subject to exercise of warrants, IndiaRF along with its affiliates will collectively end up owning 10.4 per cent stake in the company on a fully diluted basis, it added.
Commenting on the development, IndiaRF MD Shantanu Nalavadi said: “The purpose of this investment is to not only restructure the company’s balance sheet, but more importantly, work closely with the promoters and management team, to drive rapid revenue growth and sustainable profitability improvement.”
IndiaRF continues to remain focused on providing long term strategic solutions that enable an effective turnaround for high quality companies that have the potential for accelerated growth and profitability, he added.
In similar vein, Panacea Biotec MD Rajesh Jain said: “We look forward to leveraging their proven global expertise in restructuring and turnarounds, and are certain that our combined efforts will now help accelerate our ambitious growth and profitability targets.”
Brescon & Allied Partners LLP were the exclusive advisors to the company on this transaction, advising on the one time settlement with the banks and raising funding to back the revival plan, the statement said.
India Resurgence Fund (IndiaRF), an equal joint venture between Piramal Enterprises Limited and Bain Capital Credit.
Shares of Panacea Biotec closed at Rs 181.15 per scrip on BSE, down 0.19 per cent from the previous close. AKT MR